The Independent Petroleum Marketers Association of Nigeria (IPMAN) has disclosed that filling stations across the country have reduced the pump price of Premium Motor Spirit (PMS), commonly known as petrol, by N125 per litre over the past three weeks.
The association attributed the reduction to the recent cuts in the ex-depot, or gantry, price of petrol by the Dangote Refinery, which it said had enabled marketers to lower retail prices for consumers nationwide.
Speaking in an interview on Monday, IPMAN National President, Abubakar Maigandi, said the reduction followed ongoing efforts by stakeholders in the downstream petroleum sector to ensure that falling costs are reflected at the pumps.
His comments came shortly after the Federal Government convened a meeting with key players in the downstream oil and gas industry, including representatives of the Dangote Refinery, depot owners and petroleum marketers, to discuss the implementation of cost-reflective fuel pricing.
The meeting followed the Federal Government’s insistence that the decline in global crude oil prices should translate into lower petrol prices for Nigerian consumers.
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According to Maigandi, petroleum marketers have already begun implementing the agreed price adjustments, resulting in significant reductions at filling stations across the country.
He said the retail price of petrol, which previously sold for as much as N1,340 per litre in some locations, has now fallen to between N1,155 and N1,299 per litre, depending on the location and marketer.
“Fuel prices will go down further; that was our major agreement. Both Dangote Refinery and depot owners assured Nigerians,” Maigandi said.
He added that the association remained optimistic that additional reductions could be achieved if the current trend in international crude oil prices and domestic supply conditions continues.
“Presently, we have reduced it by N125 per litre nationwide,” he stated.
The latest reduction follows repeated calls by the Federal Government for marketers to adopt cost-reflective pricing in line with prevailing market conditions.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, recently urged petroleum marketers to ensure that the sharp decline in global crude oil prices is reflected in retail fuel prices, stressing that deregulation should not be used as a basis for excessive profiteering.
Industry stakeholders, including marketers, depot operators and refinery representatives, have since pledged to work together to achieve a pricing framework that balances affordability for consumers with the commercial sustainability of businesses operating in Nigeria’s deregulated downstream petroleum sector.
The latest price reductions are expected to provide some relief to motorists, transport operators and businesses, many of whom have faced rising operating costs due to higher fuel prices in recent months. Lower petrol prices could also contribute to easing transportation costs and moderating inflationary pressures across the economy if the downward trend is sustained.
